DE SB46

Adds new Section 1333 to Title 18 authorizing the Insurance Commissioner to issue rules and regulations for prudent use of derivative instruments and qualified financial contracts by domestic insurers.

Adds definitions to Section 5901 of Title 18 for qualified financial contracts, including commodity contracts, forward contracts, repurchase agreements, securities contracts, swap agreements, netting agreements, and related terms.

Adds new Section 5933 to Title 18 protecting counterparties' contractual rights to terminate, liquidate, accelerate, and close out qualified financial contracts and netting agreements with insurers in formal delinquency proceedings.

Allows non-defaulting parties to enforce security rights, set off obligations, and receive net settlement amounts under qualified financial contracts despite any stay or injunction that might otherwise apply.

Effective immediately upon enactment but only applies to liquidation, rehabilitation, or conservation proceedings commencing after the bill's enactment date.